Business, international

Banking on a change

Article Abstract:

China which is relatively insulated from the financial crisis affecting Asia will not remain immune without reforming its state banking sector. Estimates place the number of non-performing and non-recoverable loans at between 13% and as high as 40%. Premier Zhu Rongji has stated the state banks will be turned around by 2001, but the central government has not adopted specific areas to target.

New import exemptions

Article Abstract:

The Chinese government introduced exemptions on custom duties and the value added tax for foreign investment enterprises. The financial crises in Asia poses concerns that foreign investment might decline for the first time in China's recent history. To offset the difficulties the government has implemented the new policy effective Jan. 1998.

Fifth time lucky?

Article Abstract:

The People's Bank of China's interest rate cuts are expected to have little impact on the Chinese economy. The interest rate cuts were as a result of weakening domestic demand, the Asian financial crisis, and falling investment growth. Economists contend the cuts are too small and may not be able to prevent China's economic stagnation.